S Norton hails 7% rise in pre-tax profit

Scrap metal firm S Norton has said a large increase in its turnover, which helped pre-tax profit grow 7% to more than £25m in 2017, has been driven by higher ferrous prices.

The company’s turnover shot up from £205m to £272m in 2017 in the year to 31 December 2017, according to its annual report.

Chairman John Norton said: “Despite some volatility along the way, dollar sales prices for the main ferrous grades finished the year more than 20% higher than they had started at [throughout 2017].

“These price increases helped to drive turnover up by a third to more than £272m, and likewise operating profit rose significantly, from £16m to over £23m.”

S Norton also made “large gains” from changes to the foreign exchange rate in 2016 and a further £2m in 2017.

But Norton struck a note of warning over future profits.

He said: “Although long-range forecasts anticipate ever-increasing demand for scrap products, uncertainty over the terms of Brexit will cast something of a cloud over the UK economy in the short run, with the potential to impact on scrap arisings as a result.”

He also warned that current tensions between China and the US on tariffs could have a “detrimental effect on demand should a full-blown trade war ensue”.

The company said it has identified several major investment projects at its sites in Liverpool, Manchester, Southampton and London.

Technical director Matt Norton said: “As a family business, we take a long-term view. Our policy is to invest continually in good quality equipment to maintain our position at the forefront of the industry.”

Have your say

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.

In Latest

Get access to key decision makers

With a focus on the recycling and waste management sector, in particular, materials processing and reprocessing, waste management and collection, retail waste and recycling, construction waste and recycling, MRW is read by key decision makers in the industry.